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The Health Bill's Unemployment Implications (Will it Create or Destroy Jobs ?)
Real Clear Markets ^ | 04/01/2010 | Diana Furchtgott-Roth

Posted on 04/01/2010 6:31:42 AM PDT by SeekAndFind

Democratic leaders of Congress took pains when they passed the health care reform bill to advertise to voters that they had not forgotten about jobs, the public's paramount concern.

Senate Majority Leader Harry Reid declared, "This, of course, was a health bill. But it was also a jobs bill." And, from Speaker Nancy Pelosi, "It will create millions of jobs and strengthen our economic security by keeping America competitive and igniting innovation and entrepreneurship."

Despite such assertions, there is reason to wonder whether the new health care law will create jobs or destroy them.

By now everyone knows that beginning in 2013 Medicare taxes will rise on income and capital, reducing incentives to work and invest. Singles with earnings over $200,000 and joint filers who earn more than $250,000 will see their Medicare tax rate increase to 2.35% from the current 1.45%, and they will pay a 3.8% tax on unearned income.

It's also common knowledge that in 2013 employers will be required to pay a tax of $2,000 for every worker who gets health insurance through the state exchanges. This will reduce the employment of low-skill workers who don't currently get health insurance, and higher-skill workers without insurance will see cuts in take-home pay.

For millions of American workers earning $20,000 a years or less, this amounts to a tax of 10% or more or earnings. For millions more earning between $20,000 and $40,000, the health care bill creates an earnings tax of between 5% and 10%. The new bill substantially lowers the prospects of employment for countless millions of Americans.

As well as these and other major job-killing provisions, two little-noticed tax changes would also affect employment.

Consider this one: within days of the bill's becoming law, a rash of big-name companies announced that, because of the bill, they would be writing down their earnings for 2010. And other firms warned of future layoffs.

The growing list of companies filing notices of a write-down with the Securities and Exchange Commission includes AT&T, down $1 billion; Deere & Co., $150 million; Caterpillar, $100 million; Prudential, $100 million; AK Steel Holding, $31 million; 3M, $85-$90 million; and Valero Energy, $20 million.

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TOPICS: Business/Economy; Culture/Society; Editorial; News/Current Events
KEYWORDS: healthcare; jobs; obamacare; unemployment

1 posted on 04/01/2010 6:31:42 AM PDT by SeekAndFind
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To: SeekAndFind

There are now more people riding in the wagon than pulling the wagon.


2 posted on 04/01/2010 6:33:35 AM PDT by Drango (A liberal's compassion is limited only by the size of someone else's wallet.)
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To: SeekAndFind

It will create a lot of jobs at the unemployment office.


3 posted on 04/01/2010 6:34:49 AM PDT by P-Marlowe (LPFOKETT GAHCOEEP-w/o*)
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To: Drango
If the wagon is going downhill, let's all jump on.

Wwwwwhhhhhhhhhheeeeeeeee!!

4 posted on 04/01/2010 6:36:51 AM PDT by Paladin2
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To: SeekAndFind
Senate Majority Leader Harry Reid declared, "This, of course, was a health bill. But it was also a jobs bill." And, from Speaker Nancy Pelosi, "It will create millions of jobs and strengthen our economic security by keeping America competitive and igniting innovation and entrepreneurship."

I feel like I'm living in the old Soviet Union or maybe today's North Korea. Our Government officials lie to us with impunity and without conscience and the press just reports it all as truth.

5 posted on 04/01/2010 6:38:21 AM PDT by P-Marlowe (LPFOKETT GAHCOEEP-w/o*)
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To: SeekAndFind

Ask any major health insurer what their plans are for offshoring to India over the next few years, and there’s your answer


6 posted on 04/01/2010 7:03:30 AM PDT by Buckeye McFrog
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To: P-Marlowe

Actually, they are not hiring. LOL!


7 posted on 04/01/2010 7:13:47 AM PDT by MrChips (MrChips)
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Comment #8 Removed by Moderator

To: P-Marlowe

Or the IRS!


9 posted on 04/01/2010 8:18:41 AM PDT by GailA (obamacare paid for by cuts & taxes on most vulnerable Veterans, disabled,seniors & retired Military)
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To: Drango

pelousy said 400k jobs...immediately !


10 posted on 04/01/2010 8:21:46 AM PDT by stylin19a (Never buy a putter until you first get a chance to throw it)
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To: SeekAndFind

How will the unemployed pay for their new health insurance?


11 posted on 04/01/2010 9:30:57 AM PDT by <1/1,000,000th%
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To: <1/1,000,000th%
How will the unemployed pay for their new health insurance?

They won't. Those who have income will pay for those who don't have income. That has always been the plan.
12 posted on 04/01/2010 9:43:09 AM PDT by SeekAndFind
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